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tv   Markets Now  FOX Business  October 26, 2012 1:00pm-3:00pm EDT

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will have the eye-popping price tag. you will not believe this. in the initial reading of gdp coming in better than expected so why aren't the market says about this? when will an end to the bush tax cuts slow the economy even more than diving over the fiscal cliff? the result of a new survey coming up. time for stocks now, let's head to the floor of the new york stock exchange with nicole petallides standing by. a major milestone, not a good one though. nicole: apple dropping below the $1600 mark. at one time it was at $591. you may remember recently was $700. today dropping below, it is below $600 for the first time since july. this comes with all the warnings we are hearing from apple. basically only estimates they
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came in with earnings and revenue per share but both missed the estimate and they have a lot going on going forward. s&p capital still a buy rating but some other analysts doing much of the same. they have it at 660 from 710. back to you. melissa: hurricane sandy off the coast of florida preparing to go north and sla sign the east coat with wind and rain. adrian is here with more. >> still a category one hurricane at this point in the game and sustained wind at 80 miles per hour. moving to the north at 6 miles per hour. a little bit slower than what it was earlier today. you can see this massive system huge in size in the winfield continues to improve.
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we'll not just a bit gusty wind at the center of the storm, but also far away from the center. feeling some effects across florida getting in the weather from orlando back to the miami beach area. they are short-lived but with heavy rain in a short amount of time not only that, talking very gusty wind at times 40 to 50 miles per hour. where is sandy heading next? moving to the north and eventually will be turning into the mid-atlantic and northeast. landfall will be occurring around the new jersey shore, certainly something that will be a big problem for many kicking off a week. melissa: just in time for halloween. hurricane sandy pressuring the energy market. gasoline futures higher after a staggering 10 day losing streak, longest losing streak since 1986. all on concerns the storm could hit east coast refineries.
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you are always right on target. tell me what refinery options are in the way here. >> we're talking about the epicenter of the east coast refinery industry, what is left of it, between delaware and new york harbor. upwards of 1.1 million barrels per day of refinery capacity is in the wake of this storm at this point. we do have a dearth of refinery. we already have low refinery capacity and we have very low stocks of gasoline and diesel fuel. so if you have any kind of a pool prolonged knockout to any one of these refineries because of a power outage, flooding, what have you and it stays off-line for a week we could see
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a very violent, albeit short-lived reaction in the markets to price in higher. melissa: i didn't think we had any refinery slept on the east coast the way we were going but 1.1 million barrels per day is a lot. where would we see that shift somewhere else? where would the locals be buying gas from? >> we do have options on the east coast. a month ago we had a situation in california will remember prices were searching. it is essentially an island upon itself decoupled from the pipeline infrastructure. there is a robust trade pipeline from the gulf of mexico like it always is. we could see even more vessels to barge product away from the gulf of mexico, and similar to
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what we saw at katrina, a very viable cross atlantic trade between refineries in northwest europe and northwest harbor. the price action could potentially be violent i can see lasting too long because there are avenues to get around any kind of prolonged construction in the east. melissa: california has its own special touch of gasoline that could be getting gasoline from other places and did not necessarily impact his neighbors. for this would have more of a domino effect than other communities nearby because it would be borrowing gasoline from them, right? >> that in and of itself will help again quell any kind of
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significant prolonged rally. certainly it is a wait and see. the market really isn't in impressive fashion, and market seems to be taking kind of a wait and see. we are strong today but given what we potentially are facing we have very interesting action in the market now. melissa: they could have maybe help the public and help consumers 10 days in a row. it is just a bummer. we have to go, thank you for coming on. this year's presidential campaign is on track to be the most expensive in history. president obama and mitt romney have raised a combined $1.7 billion so far according to fundraising reports. now that price tag jumps over $2 billion. if you add donations to the super-pac and nonprofit groups that run election related ads,
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they can expect to see the front of the spending as they continue to get blitzed with phone calls, even a door to door knocking campaign. speaking of political fundraising, charlie gasparino is down in texas at a barbecue fundraiser. doesn't sound like a normal place you'd see him hanging out. something tells from his travel down south rubbing shoulders with financial highfliers. charlie, are you wearing a cowboy hat? >> i'm actually wearing a new york yankees baseball cap. it was quite an event. people don't realize this, dell is a major home the financial services industry. the major firm has offices down here.
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one of the guys is that they can be financial crisis, there is a good play. pretty good numbers at the fundraiser, barbecue is actually pretty good. the financial types are lining up, and some interesting people showed up in addition. he looked pretty good. he gave some interesting remarks. representative ryan was supposed to come down here, canceled because he is spending all his time campaigning in ohio. they believe they can win ohio. by the way, what is interesting is event cockiness, keep on the pressure. kind of a voice with confidence.
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i will tell you, these guys are going to keep fundraising, doing the opposite of what they're doing before out for the last couple of weeks they would cancel, doing llss campaigning it seemed and more fundraising. they're getting the money despite being there. people are lining up. i said, this place was filled with financial types. they're worried about the fiscal cliff, they really think if obama gets reelected, there will be a showdown with massive cuts to the military and tax increases. dick cheney made some response to benghazi what he thought was such a travesty but one fun," said the best part of the debate, the first debate was turning on mn msnbc.
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melissa: you look really nice. i cannot see what kind of an outfit that is. would you look fantastic. it is a good look for you. when you get near the tv in may, the next time looking like this because you look very tough. >> i will never wear a cowboy hat. melissa: we will see. you say they're confident but not overconfident. is that right? >> yes. the financial types are really worried about obama. there were about the fiscal cliff, they worry about dodd-frank. some of the measures are so onerous that will really curtail problems in the industry. they were for months and months and months nervous. they threatened to pool their
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resources or their commitment to get republicans in the house for abetter chance of winning. they think if they keep up the pressure will keep giving the money. i would like to see how much money he raised over the last week. i bet it is a pretty amazing number. melissa: we will check it out. thank you for joining us. our disability checks the new aid for the unemployed? the surprising connection and u.s. facilities reached for record highs. and take a look at metals, just talking to the energy trade we can see other commodities trading higher as well across the board. all just a little bit higher. we will be right back.
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melissa: let's check the market. nicole petallides and on the new york stock exchange watching some big movers for us. nicole: we have seen the coal industry somewhat out of favor. talk about the fact the railroads to talk about transports are not moving as much coal. at the same time they are two names that actually came out in the coal industry. up nearly 10% right now.
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year to date down 45%. a surprise profit growth working really hard to match production in the ceo went on to show that they think it is like good year for them. internet domain names while the systolic down 19% today third-quarter profit rose what they have a big issue but a government contract and it could be delayed and with that we are seeing pressure. melissa: you may see a drop in the rate, a record rise in a little discussed but very costly government entitlement program. elizabeth macdonald with more details in the bottom line. we feel like one way or another the numbers are getting juiced and this is another way. >> what we have seen is the study of progression up the number of people getting these
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checks. up 20%. what we saw was little notice white house report on this talking about what happened to the workforce when people go on social security disability. they rarely returned the labor force resulting in a loss of the economic contributions, those workers could have made. the issue is also saying that effectively when jobs are plentiful disability checks go down. when the jobs are not plentiful, disability checks go up. it is difficult to get them back into the labor force, a tend to drop out. relationship in the rice versus long-term unemployed. melissa: look at that relationship.
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we don't want to belittle anyone but there is a trick relationship if you're at home receiving disability check without question reduces the incentive to go out and find a job. >> america want to take care of its poor. and the disabled. the question is how do you get people in the labor force? the other question is what happens to other entitlement programs for example medicare? social security benefits. melissa: how does it affect the unemployment rate? if yo you're out of work collecg disability. >> the senior editor has seen the labor force o and the space race going down and rates going
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up. melissa: thank you so much. with the u.s. economy speeding up in the third quarter, but not quite as good as you've seen. plus sandy barreling toward the east coast threatening to be a storm like we've never seen. and look at how the dollar is faring. it is higher against the euro in and the pound is lower. we will be right back.
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melissa: we have breaking news on a new report, millions of stimulus dollars wasted on creating jobs. what is it this time? >> this is from the department inspector general just obtained by the fox business network that says that green jobs program limited in terms of reported employment outcome. there is a target of training about 82,000 folks for green
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jobs, 38% only found jobs they say on top of all this 52% who completed his training were incumbent workers. they traced about 81 incumbent workers as they called them and found no evidence that they needed a cream jo green job tra. no word of who got the beneficiaries. some other percentages here is something the house oversight and government reform committee points out. those with criminal records 9%, veterans 7%. speaking the house oversight and government committee, chairman issa released a statement. we just reached out to the administration to get a response we will deliver when we get it. melissa: solicits the white house report?
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stick that is part of the administration but these are all courier folks. the bottom line is limited in terms of reported employment outcomes. melissa: it is obviously very hostile to the administration this close to the administration, so surprising this would come out from the government at all right now, isn't it? >> it is surprising that there are career employees who have been here across a number of administrations and this is what they do. melissa: thank you for that. hurricane sandy blowing through, next could this cost a billion dollars disaster? meteorologist jeff masters joins us ahead with his incredible price tag. and look at some of today's winners and losers on the s&p 500 as we head out to break. we will be right back. ♪
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melissa: time for stocks now as we do every 15 minutes. let's head to the floor of the new york stock exchange. our own nicole petallides standing by. stocks still in the red, down 25 points. >> not a great day on wall street. we're seeing selling across the board. nasdaq is down half a percent. amazon, apple coming under pressure. s&p 500 is down one-third of 1%. there is the dow holding the 13,000 line, still down 22 points. we're continuing to watch that as well, under pressure with names like bank of america, unitedhealthcare and also home depot and hewlett-packard. let's look at a different name, comcast, which is doing well today. that is because their third quarter profits were on the
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rise. they did well with their quarterly report. another factor that came into play was the london olympics coverage which brought in revenue for nbc universal. that obviously scored nice findings for them. $1.2 billion in additional revenue from that. that certainly helped them along. that's why you're seeing up arrow, 2.6%. back to you. melissa: nicole, thanks so much. hurricane sandy is churning in the atlantic heading for florida battering the coast with wind. fox news's phil keating in fort lauderdale. phil? >> hurricane sandy certainly delivering in name on a1a, the famous highway that hugs the coastline of florida. about two or three miles here closed off all day long. you can see why. sand from the beach pushed in from the big surf, thanks to the outer bands of hurricane sandy overnight. this morning everybody woke up with sand covering this roadway. so all of these hard-working
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construction type crews are out here trying to scoop it up and clear it out for later. of course, florida, being far enough west of the eye of the hurricane about 250 miles, fortunately for florida, it basically has been a storm impact on the level of tropical storm. the winds have died down. the bands of rain are getting fewer and fewer. but it has been about two days. pretty rotten weather here in florida but as hurricane sandy continues its march north and is heading up the coastline of florida but well offshore, it is actually going to make better weather from south to north of the state as the day progresses. weekend should be looking good. will be a couple days churning out there in the atlantic before making landfall in major met metropolitan centers of. new york, philadelphia, new jersey as well.
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cold front and hurricane dubbing "frankenstorm". a per perfect time for halloween wean. international boat show remained open. only canceled one time for a hurricane. that was late october hurricane. everyone in south florida remembers it, hurricane wilma. fortunately hurricane sandy only causes a lot of on convenes with rain and wind. so far minimal damage. back to you. melissa: phil keating, thanks so much. let's stay with hurricane sandy. our next guest says the storm could be a billion dollar disaster for the u.s. jeff masters is director of meteorology at weather underground. he joins me with more on that. how do you get to a billion dollars? that's a big number? it is not hard to get there when you have a category 1 hurricane hitting a heavily populated area that will have winds last for 24 hours. will put a big storm surge
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ashore, three to six feet where it makes landfall. you have heavy rains that will cause flooding as well. melissa: is there any chance it won't collide with the other storm this nor'easter coming down from the north? >> i don't see any way. the storm will be absorbed by this front coming in and the two are going to combine. the hurricane will steal some energy from the front and it is going to become a "frankenstorm". combination of a tropical storm storm and non-tropical storm and take energy from that storm as well. melissa: what are the big dollar values of things as you're adding that up? is it beach erosion? it's damage to homes. i mean how do you get there? >> yeah. certainly beach erosion and damage to structures along the coast are going to be big. there is going to be probably millions of people that are going to lose power because the trees are still and winds from the storm will act a lot of time on the trees.
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there will be saturated soils from all the rain falling which will help bring down the trees as well as power lines. one big problem i have if the storm is far enough north you could eventually get the storm surge going into hurricane subway system. hurricane irene only missed eight inches last year. the storm surge from sandy will be similar to irene's. melissa: in terms of dollar value is that all damage or do you take into account loss of production tuft and -- productivity as people stay home and don't do anything or spend money. >> i'm just talking about insured damage. >> a lot of people are hitting the stores trying to stock up ahead of this. in some way there is some juice to the economy as people panic and go to the stores, right? >> yeah, sure. i've heard that beer and pop-tarts are the big sellers right before a hurricane. >> yeah. so, there is no other potential path now this storm as far as you see it? sometimes, and we get these questions a lot from viewers,
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we gear up for this big event and comes through and it is kind of no big deal. any chance of that? >> somebody is going to get it and it is going to be somewhere along the coast from probably virginia to new york. so maybe if you're in virginia it goes north, you say, well, this was no big deal. but that means up in new york they're really going to get the bankrupt of this. somebody is going to get it. may not be exactly where we think it will go right now but it is unavoidable at this point. melissa: the satellite map we're looking at right now is terrifying. jeff masters, thanks so much for coming on. >> you're welcome. melissa: initial reading of third quarter gdp coming in better than expected. so why aren't markets excited? gone but not forgotten, the top earnings dead celebrities. who tops the list this year from "forbes"? you might be surprised by this one. look at treasurys as we head out to break. the yield on 10-year dropping by six basis points. we'll show you the 30-year too. we'll be right back.
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it's just common sense. from td ameritrade. so, which supeast 4g lte service would yochoose, based on this chart ? don't rush into it, i'm not looking for the fastest answer. obviously verizon. okay, i have a different chart. going that way, does that make a difference ? ok at verizon. it's so much more than the other ones. so what if wjust changed the format altogether ? isn't that the exact same thing ? it's pretty clear. still sticking with verizon. verizon. more 4g lte coverage than all other networks combined. >> i'm cheryl casone with your fox business brief. after terminating internet analyst mark mahaney, citigroup issued a statement they are they're pleased to have the matter resolved. they say he failed to stop
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information about facebook prior to the ipo filing. manhattan district attorney's office charging a businessman with a multimillion-dollar scheme to defraud facebook and mark zuckerberg. he filed a federal lawsuit falsely claiming to have been promised a 50% share of the company and doctored and destroyed evidence to support the claim. stocks searching for direction in afternoon trading. the dow is still positive. that is the latest from the fox business network giving you power to prosper
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melissa: only 11 days to go before the election. third quarter gdp grew at a higher than expect the two% rate. consumer sentiment rose to the highest level in the five years. phillip swagel, economist at university of the maryland and former treasury
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secretary says the date is not as good as it seems and he joins me now. one of the thing i noticed in this report that government spending jumped quite a bit in the quarter. it was up 9%, or better than that almost 10%, so that is one thing that is juicing the number. what did you make of it? >> absolutely. listening to the pentagon fiscal cliff and defense sector and trying to get the spending done as soon as it can. that was temporary. and consumer spending was strong. we know the job market is improving but very slowly. it is hard to imagine consumer spending will remain so strong unless the job market gets better. melissa: no. and on the back of that look inside the number on business spending was really poor. especially business spending on fixed costs, whichh you know that is buying buildings, structures, buying equipment, computers and things that you're going to invest in for the long term, basically because your business is growing, that number fell. i mean what does that tell you? >> yeah. it is a striking difference
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between consumers and businesses. businesses are not hiring. they're not buying new equipment they need to make the existing workers more productive. they're nervous. they see what is going on in washington. they see what is going on in the fiscal environment, regulations and taxes they're nervous. we need to find a way to get businesses less nervous and back to spending and hiring. melissa: if you are trying to spin this in a positive direction you would say gdp expanded in the previous quarter no matter how modest it was. it was one and change and bumped up to two. that is step in the right direction or how would you respond to that? >> i would. we're growing. we're adding jobs. the unemployment rate has come down. it is not satisfactory. we're not growing at the pace we need to create jobs to reduce the unemployment rate. so it is growing. it is just not good enough. melissa: the economy is expanding at 2%, how much could that possibly from a quantitative easing point of view, how much could that possibly lift this unemployment rate or lower the rate, lift the number of
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people finding jobs? >> thatt is consistent with low 100 thousands of jobs per month and very small, very schragish decline in unemployment rate. it will not go up unless a lot of people will come back into the labor force. we'll be suck around 7.8% for the near future. melissa: if we grow at 2%, how long would it take us to go back to a 5% unemployment rate? years and years, right? >> years. talking four, five, six years. that is what is the fed is expecting. that is what they're expecting in latest forecast. melissa: thanks. stay out of the track there. viacom chairman sumner redstone is not looking to step down. i'm not sure looking he ever will. he is looking to the keeping in the family. dennis kneale joins us with more. i don't think he is ever retiring. >> he is officially not ever planning on dying even though almost 90. melissa: that is implied. >> this is tantalizing tale
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of a billionaire, power struggle and maybe betrayal. sumner redstone in page one interview in the "wall street journal" may have set off a new controversy over who might succeed him when he dies. he is 89. sumner saying his 58-year-old daughter sherry who runs family theater chain could end up running the show. never mind they feuded in the past. that might betray this man. they assumed he would be in control and publicly critical of his daughter as she tried to push for the right to succeed him. it wouldn't please this guy. cbs ceo les moonves is is said not to like sherry even much. he brings sills even having sumner as his loss. sumner has enormous increase in wealth since the market bottom. his net worth quadrupled to $4 billion. he owes a lot of rise to phillip do you mean man and les moonves. the stock is up 260% from the market bottom in.
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cb. under les moonves up tenfold, 1,000% from the bottom. you get the feeling sumner redstone realizes, given the statement he put out for fox biz in response to the story, quote, phillipe is doing an outstanding job running viacom. there is no one in the world i trust more than him. he will always have an enormous role. so we'll see. melissa: this would be fantastic reality show. wouldn't that be enjoyable? >> it is fantastic. melissa: follow all the people around. >> i have a copy of a letter from 2007 which sumner wrote to forbes when i was manager at "forbes" criticizing his daughter sherry for trying to assert her right to become chairman of the company. saying if i have to i will have the boards remove her. now they're back together. sumner got in trouble. borrow hundreds of millions. borrow assets. needed his durst's cooperation in the theater chain and now he seems to warmed up. melissa: wonder what
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thanksgiving is like with all these folks? that would be interesting. >> like every american dysfunctional family. before someone says, what is that supposed to mean? melissa: that would be the finale to the season on the reality show, thanksgiving in the house and everybody would end up throwing things. that would be great. dennis, great reporting. quarter to and as we do every 15 minutes let's check the markets. nicole the pet on -- nicole petallides on the floor of the new york stock exchange, looking at big tech movers for us. >> nasdaq composite is the worst indices but not down too much, one quarter of 1%. we want to look at amazon. that is the first one we're covering. they came out a forecast and virtually weak. it is missing all analysts estimates, earnings per share and revenue numbers. a lot comes into the factor that amazon is spending a lot of money for the future with warehouses with technology in order to remain competitive. so the question is, all this spending that they're doing, will it ultimately many really lucrative for amazon. don't forget, a lot of the stores, regular stores, like
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target and best buy, are starting to say, hey, we'll meet or beat the prices that you find on internet. that is not good for amazon. here is a look at amazon today. it is up 5%. look at expedia. expedia is also a winner. they came out with their numbers. they're seeing more bookings and folks getting into travel. this is good news and bringing priceline up as well. back to you. melissa: nicole, fantastic. thanks so much. they aren't with us anymore. but their money is. "forbes" releasing the list of highest earning dead celebrities in the past year. reggae legend bob marley's estate brought in roughly $17 million. no small peanuts for charles shulz and his estate which brought in 37 million bucks. elvis presley always a strong one in the polls. made $55 million. he was outdone by the king of pop michael jackson's estate raked in $145 million. jackson though, was not number one. that honor went to elizabeth
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taylor. her estate making $210 million in the past year. i'm shocked by that. that is a huge number. would ending the bush tax cuts have a bigger economic impact than cutting spending? the result of a surprising new survey. take a look at some of today's winners and losers here too as we head out to break. you can see expedia having a great day. up another 10%, flying away. we'll be right back. sometimes investing opportunities are hard to spot. you have to dig a little. fidelity's etf market tracker shows you the big picture on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker is one more innovative reason serious investors are choosing fidelity. get 200 free trades today
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melissa: so in august facebook's ipo backers and founders were given a chance to unwind their stake in the struggling stock. well now, it is employees turn. that is on monday. more than 270 million shares
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of facebook will be eligible for sale. with the majority coming from restricted stock and other options held by the staffers. these shares are just part of a larger block of more than a billion shares being unlocked by facebook in the coming weeks and available for sale on the public market. after reporting solid third quarter earnings on tuesday, remember the stock jumped a lot. so you would be thinking a lot of folks getting out of this lockup period may be thinking to themselves, hey, that was 20% jump. it might be worth a sale on monday. we're watching the stock sinking a little it about. it is down about 43 cents here ahead of that trade on monday. so this is a story to watch. if you own the stock you want to be aware of that for sure. what is worse for our economy? falling off the fiscal cliff or ending the bush-era tax cuts? a new survey of economists reveals the tax would cost the u.s. economy about $200 billion next year. that is twice the cost of automatic government spending cuts. here to weigh in matt welch,
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editor-in-chief at "reason" magazine. i was surprised to look at these stats. the fiscal cliff, sequestration, we made that into such a huge deal. to think that the impact from that is half the size of what we would see from the expiration of these tax cuts was surprising to me. >> it actually isn't a surprise. when people have done research into how do bridge fiscal deficits across a lot of different countries they have consistently come to the con -- conclusion tax hikes hurt the economy. that the efforts that work the best are ones that involve the biggest government cuts, not just in terms of the economy. government cuts is much better for the economy than cutting, than increasing taxes, but also for having an enduring fiscal, sort of package that lasts. deficit reduction package that last. >> when you say it is $200 billion, that would be taken out of the hands of the private sector if these tax cuts expired, versus $100
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billion in government spending that would come off the table, is there a multiplier on that where you're sort of factoring what spending might not happen? is that just the straight, how much money, how much taxes would go up by is $200 billion? >> economists all differ on the number of multiplier whether it actually exists in one direction or the other but for sure when government takes our money and tries to spend it will do it less efficiently than if we spent it ourselves. melissa: we say that but some economists don't agree with that. >> the only condition economists disagree with that is at a moment of economic crisis. keynesian thing is not about spending money but spending money when demand has fallen off. we're not like that. we spent money between 2000 and 2010. which doubled size of federal government. did we have much better economy in 2010? no. no one believes if you just spend money it will create jobs. melissa: 'canes also doesn't take into account that is
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surplus from some other time they're spending. >> giving us debt overhang. the debt service is threatening to double or triple the next five years. >> scary number, they grouped together what if both things happened but we can't imagine that happening if you grouped everything happening at once and took into account all new taxes coming from obamacare economists estimate the gdp would drop 3.6 to 5.2%. which would make it negative. >> astonishing how little this is discussed in terms of the presidential race for example. they didn't talk about this at the debate. it is consensus opinion, whether liberal, libertarian, republican, whatever, among economists if the fiscal cliff happens on john 1st which currently scheduled is to happen right now, then we'll see the economy suffer pretty badly. melissa: thanks so much, matt. airline travel has lost much of its allure recent years taking world's longest flight is no exception.
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singapore airlines announced it is canceling a nonstop flight between singapore and newark, a distance of 9500 miles because of the high expense. they say the lack of consumer interest. an average ticket price of $4,000 each way. the 18 hour flight, i don't know. i can understand why people may not want to take that one. if you're going that far, you kind of want to go nonstop. anyway, coming up tonight on "money", founder and ceo of 6'3" joins me to discuss the newest breakthrough in video text-messaging. so you text a video. you don't have to like attach a video. it is very cool. that is tonight at 5:00 p.m. eastern here on fox business. forecasters say it could be the worst storm to hit the northeast in 100 years. hurricane sandy expected to punish east coast with rain, snow, high power winds, power outages. you name it. the latest on the path with ashley webster and tracy
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melissa:. we got the gdp number better than expected, slightly, 2%. the market is down one point. market is obviously not celebrating. what do you guys think? tracy: it was all defense spending. ashley: as your previous guest said, government spending. tracy: so what is to cheer? melissa: i don't know. ashley: talking about the big storm coming this way. tracy: a little annoyed at sandy, not smith. a little annoyed i tell you. our hurricane. ashley: she is not a lady. you're a late did i by the way. i'm ashley webster. tracy: i'm tracy byrnes. they say it could be the worst storm to hit the market led to -- weakness ono>oe
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the corporate side. right now businesses still
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very hesitant to invest in equipment, software, structures or as we know, new employees. tracy: we heard that from the fed the other day as well. that is huge red flag,, isn't it? business investment has slowed. >> sure. this is trend we've seen last several quarters. as we look at orders report that gone into very negative territory year-over-year basis. going back to what ashley said. it is not about businesses. it is not about consumers. the number was about government spending. if we take out the unusual bump in government spending, gdp is 1.3%. same as quarter before. ashley: why do we have divergence between business spending which is basically -- but consumers are picking up their spending? >> the diversionings can really reflect what we're seeing in fiscal cliff. businesses are saying there is so much uncertainty and so much risk at the end of the year i'm going to wait. i will wait to see what happens in washington before putting that money to work, before taking on that new employee. meanwhile consumers are saying i can switch my spending patterns in a
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moments notice. latest gadget, latest iphone. i will continue to spend until i know what washington will do and adjust my spending in reaction. tracy: i think it is interesting to see the consumer out there because the consumer really hasn't seen a pay raise. >> right. tracy: how is the consumer pay for all this? we'll eventually feel that effect down the line? >> that is interesting. arguably, 12 or 24 months but consumer confidence is at a five-year high. on one hand you're saying what is the consumer looking at? we have very little income growth. very little job creation. gas prices are high but we have made real progress in other areas. the housing market is beginning to gain momentum. we're seeing stabilization in home prices. home sales increased. we're seeing gains in the equity market. consumers are feeling more financially stable that is really spursing this increase in spending. there is only so much optimism can support. ashley: that's true. get back to the business side. >> sure. ashley: let's look ahead
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next year. say we avoid the fiscal cliff. the election is over, maybe we get a better sense where the tax system is going to be. could that create a huge jump in business spending? >> oh, sure. i think there is a very large pent-up demand at this point. once we get that certainty that the market is looking for, once we get a more pro-business environment in place i think you will see a lot of those fund be put to work with immediate increase in investment. structures, equipment, and employees. really what we need to see to keep this economy going. tracy: scary stuff. this hurricane is not helping our economy at all. ashley: not at all. lindsey piegza, thanks so much for being here. we do have some breaking news by the way. nhl canceled the regular season now games through november 30th. seems like we get an update every week. it is never good. no games now through november 30th as they try to salvage this season. agreement between the players union and the nhl. tracy: josh, disappointed
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yet again. ashley: shaking his head. tracy: i'm sorry, josh. coming up the dreaded third quarter earnings season is --. ahead for you. ashley: dreaded indeed. plus much more to come on hurricane sandy including a live report from florida where wind are already whipping up. first as we do every day at this time take a look how oil is trading with the dow just down slightly lower. oil almost same as you were. not much change in oil today. metals meanwhile hitting mostly lower. we'll be right back. [ male announcer ] do you have the legal protection you need?
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tracy: i am thrilled to say that it is so now time to make some money with charles payne because he's back. >> i'm back and ready to go. tracy: everybody is good and healthy? >> everybody is good and healthy. usana health, usna is the symbol, they do nutritional products. for on on the that wants to sell. nutritional, diet personal care stuff. the company is doing really well. record third quarter. earnings up 15%. earnings up 46%. guidance above previous guidance above what the street is looking for. just seven days ago they thought they would make $4.64. the stock is looking really good. the company is coming really nicely. one of these areas that sort of kind of gets these raps,
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multilevel. ashley: mlm. >> right. all in all i really like this. i love the way it is acting. the company is all over the world, australia, new zealand, hong kong, china. really doing pretty well. tracy: what did you say mlm. >> multilevel marketing. ashley: kind of like, you sell the products. tracy: i thought that was like some code you had going on that i wasn't included. >> meet me at bar. [laughter] ashley: is that what it is is? mlm. meet you in five minutes. >> that is one i like right here. it's, it is you know a smaller name, smaller play i think it has good potential. ashley: very good. chars, welcome back. terrific. mlm by the way. >> first one's on me. tracy: i like being invited to stuff. peyton manning, how about this, getting a bigger slice of the pie, pizza pie that is. the denver broncos quarterback just inked a
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deal to own 21 papa john's stores in the denver area. be on the look yacht, during during sunday's broncos-saints game peyton starts in a new commercial. as new franchisee he can give away free peas say, he can afford it. tracy: also announcing they will continue to be official pizza of nfl and super bowl. you know why i love the story? he is working on plan b. after everything --. ashley: peyton is such a smart guy. very smart. >> he has done the whole alphabet. are you kidding me. he is on plan double d. tracy: a great story. >> love him. >> people should know this story. ashley: he is a smart guy. tracy: life after football. >> have you seen the vince young story? we'll talk about it one day. 35 million gone. guy was spending 6 grand a week at tgi friday's. five grand a week to cheesecake factory to pick up women. five grand at cheesecake. giving women $300 drinks at
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cheesecake. tracy: you can pick up women at cheesecake? >> at 5,000 gs you can. ashley: thank you charles. a lot of money for cheesecake. no wonder the stock is doing well. as we do every 15 minutes, nicole petallides on floor of new york stock exchange. nicole, apple doing something it hasn't done in months? >> yeah. i can tell you can can hang out here all day and talk about cheesecake, pizza, sports icons. i love it. all right. all right. i'll get to tech and that's apple. yes, you're right, something it hasn't done in months and not good news. it broke $600 to levels we saw back in early august. you may remember in september, this was a $700 stock, but today it is holding the $600 line just barely. of course we got the announcement for the new ipad mini and other new products but, the truth is, that they have come out with numbers that have been below the analyst expectations. and they face intense competition of course.
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the holiday season. they certainly have lots of products to offer for the holidays but we will see how they will do with that. right now, 607, a lot of analysts cut their price targets as well. back to you. ashley: nicole, thank you very much. we'll be back in 15 minutes. tracy: i will reiterate. you can not pick up chicks at the cheesecake factory. come on. coming up a bombshell report from the labor department inspector general. this is bananas. ashley: forget vince young. this is really wasting money. plus hurricane sandy weakening slightly. we'll see what happens next. certainly still headed for the east coast what forecasters say could well be a massive weather event impacting millions of americans. we have latest where and when the storm will hit. look at dollar. how is it moving? how are the currencies doing against the green back. it is down because the dollar is up. canadian dollar, peso is down against the dollar. only japanese yen is slightly higher. we'll be right back.
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>> at 20 minutes past the hour i'm arthel neville with your fox news minute. the east coast bracing for a storm the likes of which we may have never seen before as hurricane sandy makes its way towards our shores. sandy is expected to merge with a winter storm and a
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blast of arctic air and hit the east coast next tuesday, creating a super storm. former italian president burl burl was convicted of tax fraud silvio berlusconi. it landed him a had year prison sentence. berlusconi is expected to appeal the conviction. >> according to "the wall street journal" the fda is reporting that inspect found greenish black foreign material in the steroid vials tied to the recent meningitis outbreak. these are the latest headlines from the fox business network. get you back to ashley and tracy. ashley: thank you very much. tracy: poor berlusconi. a story that broke in the last hour, the department of labor inspector general says millions of stimulus dollars were wasted on green job training. rich edson with more on the story. rich, not much of a sauer prize, right, rich? >> limited success, tracy,
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that is the phrase the inspector general of the department of the labor gives so far to the green jobs training program. 500 million for research, labor exchange, job training projects to get folks green jobs part of the stimulus funding. look at some of the results. it trained 82,000 folks or in process as of the time. results in june. 38% found a job. 52% were already working. as far as results not being able between 24 and 44%. there was a piece of this report that they followed 81 of the trainees and investigators found no evidence they even needed green job training. the response from the house oversight government reform committee, darrell issa chairman there, they released the report, not only was the program poorly thought out, mismanage and dysfunctional but served as slush fund to reward friends of the obama administration like labor unions. we asked the administration. they referred us to the department of labor. the department of labor hasn't gotten back to us
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yet. there is a piece of this report has response from department of labor. we're in the middle of training process. woe trained thousands workers. results are not in yet in very tough economic climate. tracy. tracy: dysfunctional, that is quite a charge the thank you, sir. >> thanks. ashley: quite an understatement i think. shares of comcast getting a boost after it reported strong third quarter earnings. by the way that brings the number of s&p 500 companies that reported so far to 275. 173 have beaten analyst estimates bringing the beat rate to about 63%. expectations were lower. so halfway into this earnings season what themes are we seeing? let's bring in scott wren, senior equity strategist with wells fargo advisors. scott, let's start with that stat. 63% beat. isn't that better than what we expect the going into this earnings season? >> ashley it is a little bit better. most of these earnings
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seasons we've seen over the last two or three years it has been 65 to somewhere maybe in the low 70s but we're initially a touch below 60 earlier after a quarter of the companies reported but this 63% is a little bit better. i wouldn't expect it to get too much higher as we go through the second half of the reporting season. ashley: where does that lead to q4? the fourth quarter, what are you expecting, something slightly better or a nice rebound? >> yeah, i think slightly better. i think, you know, if you had something in the mid to maybe upper single digits, something like that. the consensus a few months ago was something higher than that but it's come down but we have a 103 number out there for the full year. i think we're going to end up, end up pretty close to that. really ashley, for us, we're dealing with retail clients and we want those clients, third quarter earnings, that's a lagging indicator. fourth quarter, we're in that right now. we want our clients, what is going to happen over the next four or five quarters. ashley: yeah. >> we don't want them to
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focus heavily on the fourth quarter. it is, you know, it will be okay. it will be a better than a lousy third quarter. we want them focused out what is going on in 201. ashley: what about the profit margins, scott? companies are getting used to being able to operate quite well with less, with regard to workers and, i can see that worker costs will go up, overheads will go up. how much of the profit margin will be affected going forward? >> we've had great margins here for the really much of this, much of this recovery and they're not at their highs but they're pretty close. and, if i look ahead, i think, you know, gdp will be a little better next year. maybe 2 1/2%. i think china has a decent chance of maybe lifting in terms of their gdp next year. might be a chance that europe is less bad, i don't think they will flatten out but be less bad. all of those things mean business will be a little
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bit better. i think companies stripped out about all the costs they can. they're likely to continue hiring people albeit at a slow pace. so these margins, they may stay at elevated levels versus history but i don't think we're going to see them make new highs again. ashley: before i let you go, scott, what about targets on the s&p? from what i see here, 1400 to 1450 for this year but looking ahead what are you targeting? >> well, ashley a couple weeks ago we released our target for year-end next year 1525, 1575. ashley: okay. >> if we end in the middle of our range that will be a nice year in 2013. ashley: you would like to see more of a pullback you say? >> we would love to. i think pullback is an opportunity. we can buy stocks cheaper if we think they will finish at the end of that range in 201. we want our clients in there looking to buy. ashley: buy on the dip. thank you so much, scott wren with wells fargo. appreciate it. thanks for joining us.
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>> thanks, ashley. ashley: there you go. tracy: continued dismal earnings season i guess? ashley: fourth quarter a little better. but really should be looking to next year. tracy: next year, yeah. probably because of this fiscal cliff. it has already killed a million american jobs. we haven't even gone over it yet. that is the finding of a new report. gerri willis has the details next. ashley: and hurricane sandy forecast to bring days of rain, high winds, power outages and more to the east coast. do we really need anymore than that? very latest where and when the storm will hit. first look at some of today's winners and losers as the dow now drifting slightly higher. as for the winners, devry, giving us a lesson, up 24% today. eastman chemical. i know pathetic, up 13%. we'll be right back.
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lori: a check of the markets as we do every 15 minutes. nicole petallides on the floor of the stock exchange. nicole: john cortines of meridian equity partners. everyone is talking about hurricane standee. i was wondering what do you anticipate? are you looking at hotels? do you think trading on wall street will come to a standstill? >> just because we are having a storm on the east coast doesn't mean it will affect all the trading that will happen globally. we are preparing ourselves to have full staffs on the floor of the stock exchange. we are booking hotel rooms making sure everyone can get an okay and everyone is safe but it will be trading as usual. we went through this with the snow storm on halloween. we have already had practice.
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volume won't get affected. we have a lot of economic news next week. earnings season still into play so we should see more volatility. nicole: what about the market? >> a sell-off won't affect the markets much but a lot of news next week, and employment number next week. we might see good things happening. nicole: we are holding the line and a lot to look forward to. we have to hang on. it will be a bumpy ride next week. ashley: thank you so much. we will be back in 15 minutes. unemployment up 1/2%, that is 12%. couldn't believe it was 12%. six million jobs through 2014. that is what a report says will happen if the federal government fails to avoid the rapidly approaching fiscal cliff. there is in black and white. 12% unemployment and huge impact but i feel like we are already feeling the impact. gerri: according to this report from the national association of
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manufacturers there has been a 1/2% carve off from gdp because of the fiscal cliff but this takes a step further. when you think about 12% unemployment can you imagine that? even mark zande who is pretty much on the left side of the equations as we could have a 9% unemployment rate if we have to go through the fiscal cliff but i have to tell you none of this is good. if we do hit that hurdle and and successfully negotiate, the usuals are going to go large and you have a very weak economy and once you see job numbers kick down like that, another way to the housing market. ashley: if they have a boom they get this fiscal cliff, businesses are not hiring, all the uncertainty, a huge spike in
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hiring. gerri: there will be a better chance of negotiating a fiscal cliff if mitt romney wins, doesn't look like the house is going anywhere. you could see a big turnaround -- >> if you kick the can down the road until next year, why do anything? i will wait yet again. it could help the economy for a long time. gerri: you keep seeing consumers trying to spend more and desperate to spend more if they have good news to depend on. we have to wait and see and goodness knows can the election be halted for the weather? i am beginning to wonder. we have a big storm coming. ashley: we have to see how bad this storm is. what do you have coming up? gerri: i am going to be talking about the numbers we have been looking at, gdp, showing what
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the problem is with that number and are we cheating at the margins when we talk about these numbers? is like alice in wonderland and nothing is as it seems to. i keep being cajoled by the government that everything is wonderful and getting better but when i look at the numbers is not true. ashley: i will be the mad hatter. don't miss the willis report tonight at 6:00, 9:00 eastern right here on fox business. tracy: the americans on disability a new record. liz macdonald will have those numbers ahead. ashley: these girls bracing for impact as dangerous hurricane sandy bears down. we have the latest on the storm track and a live report from florida next. next as we do every day let's look at the 10 and 30 year treasury, yield dropping and the price going up in response to 1.75,-three/four% and five bassist points. [ male announcer ] this is steve.
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liz: liz macdonald with your fox business brief. citigroup issuing a statement that they are pleased about the resolve that citigroup forces telling fox business mr. mahoney failed to stop the release of confidential information about facebook's idea. citigroup was hit with the $2 million fine in the state of
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massachusetts for disclosure of that information. the u.s. attorney's office charging online business with a multibillion-dollar -- facebook and chief executive mark zuckerberg. the complaint alleges the federal lawsuit falsely claiming to promise a 50% share in the company, doctors and historic evidence to support its claims. that is the latest from fox business network giving you the power to prosper.
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tracy: hurricanes and the's winds at 75 miles an hour expected to make landfall tuesday and we have complete team coverage. phil keating in fort lauderdale,
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already feeling the impact and jeff flock in the pits of the cme keeping an eye on commodities as the storm approaches the u.s.. where is sandy and when is she getting the u.s.? >> already impacting parts of florida. doesn't look like much of a storm right here, becoming a broader storm. that is what we expect to see. we talk about it as hurricanes and the right now and people are accustomed to the way we talk about hurricanes. this will not be a typical hurricane when it makes landfall in the northeast. we have the rain here. the rain will continue across parts of florida eventually moving towards the carolinas. toward the outer banks the eastern part of carolina will get ten inches of rain. we are talking about hurricane sandy, still a hurricane until it begins to make this left turn. then it becomes a hybrid system that will be a strengthening system. not necessarily a hurricane but a strengthening big storm turning into a nor'easter that you hear us talk about in the
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northeast but not snow this time. the coastal areas dealing with a powerful storm likely that we have never seen before. not the one we are typically used to when we talk about not nor'easter in this area. this will be a significantly stronger her storm. there will still be storm surge that comes with a tropical storm with very significant storm surge and the center of this crossing somewhere around southern jersey towards delaware, all of that water goes into that piece of land and gets backed up. it is not good the way the land is shaped. we will see a lot of storm surge in new york harbor. big damage across the beaches of jersey and long island and father to the east where the biggest population zone is and we will be dealing with this monday, tuesday and wednesday. tracy: thank you. ashley: it is not wreck's fault.
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to fill keating in fort lauderdale, fla. bracing for not a direct hit but certainly the effect will be felt. phil: without a doubt and quite literally hurricanes and the dumping tons and tons of sand on scenic coastal highway a 1 a in fort lauderdale. this has been going on all day long, the entire road, four plains covered with several inches of sand when everyone woke up after a long night, strong winds, ala of rain, big surging surf pushing sand from the beach over the sea wall all across the street here. the rain has subsided. the wind has died down. we have seen sunshine returns or radically as hurricane sandy which is northeast of where we are turning northbound 200 miles
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of coast. strong powerful hurricane and will continue to be over the next several days but for the entire coastline of florida the impact has been on the level of a tropical storm and tax. not the case in the island. look at fresh video from the bahamas. 700 islands pluu, battered all night into today. at least one fatality. the death toll which has been climbing all day long in the caribbean, get out and look around and climb underneath some debris. now we say 34 people, a lot of lives lost to hurricanes and the. in cuba 11 died. this was the most devastating hurricane to hit cuba in the last seven years. as 13 sandy marches north the weather is going to improve all they into tonight for the state of florida south to no. so miami and fort lauderdale looking forward to pretty good weather
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over the weekend but the big question remains, virginia and maryland issuing declarations of emergency. it will be a long several days for much of the east coast. ashley: phil keating saying goodbye to sandy. breaking news oil closing $0.23 for the day, $86.28 a barrel. down $3.77, a weekly loss of the 4%. how will hurricanes and the effect prices? jeff flock on that part of the story and the cme. what do you hearing in the pits? jeff: you might have expected to react more. traders say it is not surprising you don't see more reaction. take a look at refineries in that area. six refineries, oil refineries in the past, potentially the storm, 1.2 million barrels per day, 7%, the market doesn't
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care. >> your imagination can be your worst enemy and we had a supply side issue. we can go through some without worrying in the short-term. it is price in and the market is not worried. >> any other economic impacts you are looking at in terms of commodities? >> not really. the only thing you worry about is the oil. >> i'm headed for new jersey. see what happens. tracy: i know there's a problem. the latest on sandy. tracy: to the point earlier, the east coast, a little bit and the rest of the country -- commodities as well. it is a quarter till. time for stocks as we do every 15 minutes. nicole petallides on the floor
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of the stock exchange. nicole: expedia came up with their hours,, the truth is they have done very well. hotel bookings in the asia-pacific region. and beat the street for analyst estimates and faced intense competition in markets such as markets like google. they launched their own ways to do selling through mobile phones, smart phones. that is one area up 13% and price line up as well. ashley: thank you very much. tracy: we hear a lot about income inequality but there is little inequality when it comes to consumption. ashley: let's look at today's winners and losers. the market just barely but some of these stocks doing very well. expedia up nearly 13%. we will be right back.
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ashley: ahead of the latest monthly jobs number that is due next friday of the u.s. may see a drop on the unemployment rate but there is a record rise in the number of people receiving federal disability benefits. liz macdonald year to break it down, these numbers in the bottom line, when you look at the disability benefits you get a different picture. liz: talking about social security disability benefits,
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1.4 million since february of 2009 getting federal disability benefits versus 4.9 billion and bear george w. bush. what the white house is saying about this trend they put out a report in december of last year. look what the white house said. individuals rarely return to the labour force and basically as resulting in a loss to society of the economic contribution those workers could have made and senior editor charlie brady, found these numbers, an interesting charge over the last few years, the number of unemployed who could have dropped out of the work force, 2.5 million, the rise in disability payments neatly correlates 2.3 million there. are we seeing a trend? yes. are we seeing 8.8 million? record number of individuals getting federal disability payments in october? september was a record month. the answer is yes.
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ashley: very interesting. thank you, appreciate it. breaking news, financial times reporting ups is planning to cut 10,000 jobs. more than first thought. the announcement will come next week. 10,000 job cuts. tracy: looking at the wrong numbers when trying to measure in the quality. our next guest seems to think so. she co-authored a wall street journal op-ed. joining us is a former consultant in the world bank and resident scholar at the american enterprise institute. thank you for joining us. what should we be looking at? >> a lot of focus on income inequality. and adequately measured and measured in the quality. and in terms, might decide to go to school rather than work and
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as a result of that, you find it is poorly measured but if you look at consumption, people smooth consumption of rivera lifetime. we say people consume out of lifetime incomes and have high incomes and they have low incomes and saves and try them and standard of living that is average for their lifestyle over their lifetime and looking at consumption would be a better measure. tracy: there is an argument that more people have tvs and washing machines but at the same time we have seen barely any rise in median household income. people at poverty level are the same as well land costs of things have gone out. there is inflation. it costs more to buy a box of cheerios today than it did when i was a kid. >> absolutely.
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people are able -- if you look what happened to consumption from 1984-2010, a change in finding inequality as ratio of people in consumption expenditures to expenditures at the bottom. that stayed constant at 4.3 over the entire period. and the kind of things at the lower income, had access to microwave ovens. and dishwashers and 50% of houses have computers and printers. there is something to be said for absolute change in status of living and complain about -- [talking over each other] >> it is no longer $5,000 if i had to spend more to buy the
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basic necessities and i truly better off? low-income household that brings in $40,000 has a much higher percentage of income on food and gas and the electric bill than someone who makes $200,000. >> absolutely true. you are spending more out of your income but to a large extent it is likely you are not measuring your income accurately. there are a lot of programs that have been helping low-income people for the past 30 or 40 years. the food stamp program and medicare and social security. a lot of the in the quality measures leaving these transfer programs looking at income. a more accurate measure might be disposable income. how much do you think you spend? [talking over each other] tracy: there's a reason you go to 4 sections of manhattan wearing -- place value on different things.
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the american enterprise institute, thanks for being with us. they are buying iphones and those speakers that are so much money. ashley: absolutely right. making wrong calls on stocks but still making money. how does that work? ceo of wealth management knows how. he is joining liz in a few moments. count down to the closing bell is next. underarm. axiron, the only underarm treatment for low t, can restore testosterone levels back to normal in most men. axiron is not for use in women or anyone younger than 18. axiron can transfer to others through direct contact. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these signs and symptoms to your doctor if they occur. tell your ctor about all medical conditions and medications. do not use if you have prostate or breast cancer. serious side effects could include
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increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or iitation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. see your doctor, and for a 30-day free trial, go to ve got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, it helps pick up some of what medicare doesn't pay.
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and could save you thousands in out-of-pocket costs. to me, relationships matter. i've been with my doctor for 12 years. now i know i'll be able to stick with him. [ male announcer ] with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and you never need a referral to see a specialist. so don't wait. call now and request this free decision guide to help you better understand medicare... and which aarp medicare supplement plan might be best for you. there's a wide range to choose from. we love to travel -- and there's so much more to see. so we found a plan that can travel with us. anywhere in the country. [ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember,
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all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you thousands a year in out-of-pocket costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. liz: good afternoon. i am liz claman. the last hour of trading. count down to the closing bell begins right now. why is our money doing what it is doing? it has been down much of the day. dow jones industrials and nasdaq popped into positive territory. here are a couple data points. gross domestic product growth beat expectations, just barely


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